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Skyscrapers stand on the skyline in the La Defense business district, viewed from the Ballon Generali de Paris hot air research balloon during air quality checks, over the Park Andre-Citroen in Paris, France, April 29, 2025. Benoit Tessier
Skyscrapers stand on the skyline in the La Defense business district, viewed from the Ballon Generali de Paris hot air research balloon during air quality checks, over the Park Andre-Citroen in Paris, France, April 29, 2025. Benoit Tessier
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French economic growth confirmed at 0.3% in second quarter - INSEE

August 29th, 2025 | 06:54 AM MARKETS European Markets 2

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By Reuters

France's economy grew slightly in the second quarter, final data from statistics office INSEE showed on Friday, confirming the preliminary reading of 0.3% that showed the euro zone's second-largest economy gaining momentum.

The result was in line with an average forecast of 0.3% in a Reuters poll of 21 economists.

Exports rebounded moderately to +0.5% after -1.2% in the previous quarter, boosted by a strong rise in exports of pharmaceutical products, the statistics office said.

Household consumption, the traditional driver of French growth, rebounded slightly to 0.0% from -0.3% in the previous quarter, as an increase in spending on food and services offset a sharp drop in energy spending (-2.4% in Q2 after +0.8% in Q1).

Quarterly growth in France is forecast to hold at 0.2% from the second quarter through the remainder of the year, INSEE had said in June.

France is grappling with relatively slow economic growth and and a high budget deficit.

Prime Minister Francois Bayrou wants to reduce the budget deficit from 5.4% of GDP this year to 4.6% in 2026, ultimately targeting the EU's 3% fiscal deficit limit by 2029.

A confidence vote on September 8 will test Bayrou's minority government over his ambitious budget-cutting plans.

  • Topic
  • France
  • ECONOMY/GDP (UPDATE 1)
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